Nvidia Affair: Suspicion of Chinese Espionage Sparks Clash Between Trump's Ministers

A sharp confrontation erupted in the Trump administration between Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, after Bessent demanded that 'Megaspeed', a client of Nvidia, be declared a national security threat over fears of chip smuggling to China. The demand intensified after Nvidia's CEO admitted to a romantic relationship with a senior executive at the company suspected of Chinese espionage.

A sharp confrontation erupted in the Trump administration between Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, against the backdrop of suspicions that 'Megaspeed', a major client of chip giant Nvidia, is smuggling advanced chips to China. According to a report on CNN, the confrontation took place last week in the White House Situation Room. Bessent demands that 'Megaspeed' be declared a national security threat and placed on the 'Entity List' – a blacklist of companies posing a national security risk. Concerns escalated after Nvidia CEO Jensen Huang admitted to having a romantic relationship with Alice Huang, a senior executive at 'Megaspeed' suspected of espionage on behalf of China. Despite the warnings, the Commerce Department has so far refused to take action. 'Megaspeed', registered in Singapore, purchased chips worth over $4 billion. The company denied the allegations, and the Chinese Foreign Ministry dismissed them as 'baseless speculation'.